CDM Status in Pakistan Dr. Syed Sajidin Hussain Clean Development Mechanism Cell Ministry of Environment, Government of Pakistan 20 October 2005

CDM ~ Activities Status Pakistan signed Kyoto Protocol (Jan 2005) Ministry of Environment ~ DNA Established CDM Cell in MOE (Aug 2005) National CDM Strategy (Draft for approval)

National CDM Authority/DNA Project Proponent CDM Steering Committee DNA/CDM Secretariat Technical Committees National and International Stakeholders PM Committee on Climate Change Policy Formulation and Implementation Operational -(One Window Office) Facilitation and Promotion

CDM Secretariat Composition: Headed by Joint Secretary (IC), MoE CDM Cell ~ three Experts (2 in place) Syed Sajidin Hussain (Incharge) Two CDM Support ExpertsFunctions: Private sector facilitation (project developers, project monitoring and certification, awareness/capacity building) National focal point for the CDM program Secretariat to the National CDM Steering Committee and CDM Technical Committees

High Level Committees PM Committee on Climate Change Policy and Review Forum Composition Federal Minister for Environment Minister for Food, Agriculture and Livestock Minister for Science and Technology Minister for Water and Power Minister of State for Environment Deputy Chairman Planning Commission Dr. Ishfaq Ahmad, Special Advisor to PM

High Level Committees CDM Steering Committee (To meet at least quarterly) Provide necessary policy advice and guidance to the CDM Technical Committees and CDM Secretariat Review the implementation progress of CDM projects Ensure inter-ministerial coordination for effective management of CDM process in Pakistan Composition Secretary, Ministry of Environment - Chair Additional Secretary, Planning and Development Division Additional Secretary, Ministry of Finance Additional Secretary, Ministry of Petroleum & Mineral Resources Additional Secretary, Ministry of Food and Agriculture Additional Secretary, Ministry of Science and Technology Additional Secretary, Ministry of Foreign Affairs Additional Secretary, Ministry of Industries Additional Secretary, Ministry of Commerce Additional Secretary, Ministry of Water and Power Director General, Board of Investment Chairman, Alternate Energy Development Board Managing Director, ENERCON Additional Chief Secretaries, Provinces/AJK/Northern Areas President, Federation of Pakistan Chambers of Commerce and Industry One Representative from NGOs

CDM Technical Committees Three technical committees (to meet on need basis) Three technical committees (to meet on need basis) Technical Committee on Energy Efficiency/ Renewable Energy Technical Committee on Waste Management Technical Committee on Agriculture, Forestry and Livestock Additional committees may be notified if needed Additional committees may be notified if needed Functions Functions Promote and advise on CDM projects Assist project sponsors in developing CDM projects

Project Approval Criteria Consistency with the national laws and sustainable development policies, strategies and plans Consistency with the national laws and sustainable development policies, strategies and plans Environmental criteria Environmental criteria Social criteria Social criteria Economic criteria Economic criteria Technological criteria Technological criteria

CDM projects Priority Areas Unilateral, bilateral and multilateral CDM projects allowed in the following areas: Unilateral, bilateral and multilateral CDM projects allowed in the following areas: Energy (renewable energy/alternate energy, energy efficiency/ energy conservation, and fossil- fuel cogeneration Land use, Land use Change and Forestry (biodiversity protection, soil conservation, watershed maintenance, sustainable forest management, afforestation and reforestation) Agricultural and livestock practices Waste Management (landfills, solid waste management, recycling) Transportation (alternative fuel vehicles, mass transit systems, cleaner engines, CNG) Industrial processes

Tax and Credit Sharing Policies  Credits to be awarded fully to the project sponsors  No income tax or duty on transfer/ sale of CDM emissions credits  Banks and other financial institutions encouraged to provide special incentives to the investors

Project Approval Project submission by the Proponent Qualitative assessment against the National CDM Criteria Letter of approval issued within one month

Pakistan’s Potential Global CDM Market Potential: (37.8 – 264 MTCO2eq/year)

Issues/Constraints Lack of Awareness/Capacity at all levels Introductory Workshop on Carbon Finance (November 14-15, 2005) – MOE and The World Bank.Introductory Workshop on Carbon Finance (November 14-15, 2005) – MOE and The World Bank. Many more workshops need to be planned to educate private sector investors in project development.Many more workshops need to be planned to educate private sector investors in project development.

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